The manufacturing overhead budget at Amrein Corporation is based on budgeted dir
ID: 2513757 • Letter: T
Question
The manufacturing overhead budget at Amrein Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2,900 direct labor-hours will be required in August. The variable overhead rate is $4 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,130 per month, which includes depreciation of $3,630. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:
$54,730
$39,500
$11,600
$51,100
The manufacturing overhead budget at Amrein Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2,900 direct labor-hours will be required in August. The variable overhead rate is $4 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,130 per month, which includes depreciation of $3,630. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:
Explanation / Answer
Cash disbursements for manufacturing overhead on the manufacturing overhead budget=(2900*4)+(43130-3630)= $51100 Option 4 is correct
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.